US Department of Labor files suit against Minnesota IT company for not remitting employee’s retirement plan contributions
Date of Action: Aug. 30, 2023
Type of Action: Employee Retirement Income Security Act complaint filing
Company/Owners: Virtual Matrix Corp.
Virtual Matrix 401(k) Profit Sharing Plan
Background: The Secretary of Labor filed a lawsuit on Aug. 30, 2023, after the department’s Employee Benefits Security Administration found the Edina, Minnesota, technology consulting company and its CEO Suman Thotakura failed to remit $45,972 in employees’ voluntary salary contributions and $759 in participant loan repayments to the Virtual Matrix 401(k) Profit Sharing Plan from April 1, 2021 to Oct. 31, 2022, a violation of the Employee Retirement Income Security Act.
Resolution: Filed in the U.S. District Court of Minnesota, the complaint seeks to make the plan whole and permanently ban the company and its CEO from serving or acting as fiduciaries or service providers to any other ERISA-covered employee benefit plan and to remove them from fiduciary positions they now hold.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Learn more about EBSA.
Quote: “Failing to forward voluntary employee contributions to employee retirement plans violates employees’ trust and denies workers the opportunity to earn interest on their investments and prepare for their future,” said Employee Benefits Security Administration Regional Director Mark Underwood in Kansas City, Missouri.